“Asian petrochemical producers are switching to butane (LPG) to meet some of their feedstock needs as naphtha gets pricier…” – ICIS News, 10 July 2007

“Prices of butane…surpassed naphtha…was almost US$20 higher..” 
– www.khaleejtimes.com, 13 October 2007

Naphtha price has been on an upward trend and was reported to have hit a new high of US$770 per tonne in mid-October 2007 (Citigroup Global Markets report).  Asian buyers are paying premiums for their purchases from the Gulf and are turning to using more non-naphtha feedstock, especially LPG.  This has in turn led to LPG prices inching upward as well. 

With a series of new petrochemicals projects by Shell, Exxonmobil, Jurong Aromatics Corporation and Reliance, as well as in China, this will only mean increasing demand for feedstock, thus further adding to the tightness. 

In China, refining capacities are being increased, however, with the booming automotive sector and the move by Chinese government to raise fuel prices by 10%, refiners might swing to producing more gasoline.  Traders are hence expecting China to start importing naphtha in 2008.  How realistic is this expectation?  Even so, where is the naphtha going to come from? 

“The expansion program of Reliance Industries Ltd (RIL)’s Jamnagar refinery in Gujarat, one of the biggest in the world is running ahead of schedule, a top company official has said….currently undergoing massive expansion and is scheduled for commissioning in 2008.”  –  1 Nov 2007, http://finance.indiainfo.com/

“(Essar Oil) 210,000b/d Vadinar refinery…is expected to hit full rates by next month…”
– ICIS News, 29 October 2007

Within Asia, will India be able to tilt the balance in favor of feedstock supply, after several major announcements of refineries expansions? 

Traditionally Middle East feedstock supplies to Asia have helped to reduce the demand-supply gap.  However, of late, naphtha and LPG supplies have become tighter due to plant closures, reduced production and diversion to the region’s own petrochemical expansions.  How long will this scenario prevail?  How will the trade dynamics between Middle East and Asia change? 

Besides conventional feedstocks, the conference will also review the development of alternative feedstocks including coal, methanol and bio-feedstock, as well as the latest development in production technologies.

Organized for the 7th time, conference highlights include:
• Conventional feedstock reviews: Naphtha & Condensate
• Economics & yield of C4 cracking
• Alternative feedstock: Coal/Methanol and Bio-feedstock
• Market reviews: Indonesia, Korea, Taiwan, China, India
• Feedstock availability from Middle East
• Petchem (including Aromatics) Outlook

The conference presents an excellent platform to gain market intelligence and establish your contacts.  Join the event and let your knowledge leapfrog and network enlarge! Secure your seats by registering online.

You will Network with
Managing Directors / Presidents, Vice Presidents, Directors, Sales / Marketing / Business Development Managers, Trading Managers, Executives, Analysts from
• International/Regional Refineries & Crackers
• Natural Gas/Methanol producers
• Bio-Ethanol producers
• Petrochemicals (Olefins & Aromatics)
• Petroleum / Crude Oil / LPG / Naphtha / Condensate Trading companies
• Coal suppliers
• Financial institutions/Banks
• Additives & Technology solution providers
(Coal-to-Liquids CTL, Gas-to-Liquids GTL, MTO, MTP)
• Consultancies
• Shipping / logistics / storage companies